Orla Mining Acquires Musselwhite Gold Mine for $850M, Doubling Output

Canada’s Orla Mining has announced the acquisition of Newmont’s Musselwhite gold mine in northwestern Ontario for $850 million. The deal, comprising $810 million in cash and contingent installments tied to gold prices, is set to close in the first quarter of 2025.

“This is a transformative step for Orla as we move from a single-asset producer to a diversified gold miner with significant growth potential,” said Jason Simpson, Orla’s president and CEO.

Doubling Gold Output

Musselwhite, an underground mine operational for over 25 years, had 1.5 million ounces of proven and probable gold reserves as of the end of 2023. The acquisition will more than double Orla’s annual production to 300,000 ounces, positioning the company to capitalize on near-record gold prices.

 

The mine is expected to generate over $150 million in annual free cash flow for the next six years.

 

Strategic Expansion

 

The Musselwhite acquisition aligns with Orla’s broader growth strategy. The company is also developing the South Railroad project in Nevada, which aims to increase total output to 500,000 ounces annually.

 

“We intend to not only continue to operate Musselwhite but also seek optimization opportunities, grow its reserves and resources, and extend its mine life,” Simpson added.

 

Newmont’s Divestment Strategy

 

This transaction marks the beginning of a series of planned divestments by Newmont as it looks to raise $2.9 billion following its $17 billion acquisition of Newcrest.

 

Other Canadian assets currently on the market include the Éléonore and Porcupine mines and the Coffee project, with the Cripple Creek & Victor mine in the US also listed for sale. Earlier this year, Newmont sold two Australian assets for up to $475 million and agreed to sell its Akyem mine in Ghana to Zijin Mining Group for up to $1 billion.

 

This acquisition underscores Orla’s commitment to growth and strengthens its position in a market benefiting from high gold prices driven by global economic uncertainty.

Tags: Northern Ontario / Deals & Financial / Gold / All Articles